Greece: Investing

FDI in Figures

The available data on FDIs in Greece should be taken with caution because they do not reflect the real situation. Compared to other countries of the European Union, the level of FDIs is low, and given the difficulties the country is currently facing, this trend should continue.

The high level of corruption and lack of transparency are the two main obstacles to the growth of FDIs.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	4,499	2,436	2,188
FDI Stock (million USD)	38,119	42,097	33,559
Performance Index*, Ranking on 141 Economies	118	115	-
Potential Index**, Ranking on 141 Economies	46	-	-
Number of Greenfield Investments***	48	38	-
FDI Inwards (in % of GFCF****)	6.6	15.0	-
FDI Stock (in % of GDP)	10.9	13.6	-

Source: UNCTAD - Last Available Data.

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

FDI Inflows By Countries and Industry

Main Investing Countries	2008, in %
The Netherlands	21.8
Luxembourg	17.5
Germany	11.6
Cyprus	8.6
France	8.1
USA	4.7
UK	3.8

Main Invested Sectors	2008, in %
Manufacturing	42.6
Financial intermediation	31.0
Transport, storage, communication	10.2
Trade and maintenance	8.2

Source: OECD Statistics - Last Available Data.

Form of Company Preferred By Foreign Investors: Consult Invest in Greece website.
Form of Establishment Preferred By Foreign Investors: Consult Invest in Greece website.
Main Foreign Companies: Coca Cola Hellas Bottling, Philip Morris Group (Papastratos), Vodafone, Carrefour, Amstel-Heineken (Athenian Brewery), Beiersdorf.
Sources of Statistics: Invest in Greece

Why You Should Choose to Invest in Greece

Strong Points: Greece's main strong points are:
- Its membership to the European Monetary Union (EMU). Today, Greece has become the economic hub of Southeast Europe;
- Its competitiveness within the active population in terms of education, manpower costs and work productivity;
- Its geographical location, which makes it a strategic link to the emerging markets of the Balkans, Black Sea, Eastern Europe and Eastern Mediterranean regions; and
- Its infrastructures, which are improving significantly, mainly due to the 3rd European Union community support framework.
Weak Points: The Greek economy has always been and continues to be subject, to intense governmental regulation. According to Transparency International the country also has to tackle high levels of corruption that affect many aspects of the economic and commercial life. In addition, growth has been financed by private sector loans and the public sector's absorption of EU structural adjustment funds, which has caused a large public deficit.
Government Measures to Motivate or Restrict FDI: The Legislative Decree number 2687 of 1953 as well as Article 112 of the Constitution, give approved foreign "productive investments" property rights, preferential tax treatment and work permits for foreign managerial and technical staff.

Protection of Foreign Investment

Bilateral Investment Conventions Signed By Greece: To see the list of countries, click here.
Organizations Offering Their Assistance in Case of Disagreement: ICCWBO , International court of arbitration, International chamber of commerce
ICSID , International Center for settlement of Investment Disputes
Member of the Multilateral Investment Guarantee Agency: Greece is a signatory to the Convention of the MIGA.

Country Comparison For the Protection of Investors

	Greece	OECD	الولايات المتحدة	Germany
Index of Transaction Transparency*	1.0	6.0	7.0	5.0
Index of Manager’s Responsibility**	4.0	5.2	9.0	5.0
Index of Shareholders’ Power***	5.0	6.8	9.0	5.0
Index of Investor Protection****	3.3	6.0	8.3	5.0

Source: Doing Business - Last Available Data.

Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action. **** The Greater the Index, the Higher the Level of Investor Protection.

Procedures Relative to Foreign Investment

Freedom of Establishment: Yes
Acquisition of Holdings: A majority holding interest in the capital of a Greek company by a foreign investor is legal, except in some sensitive sectors.

Office Real Estate and Land Ownership

Possible Temporary Solutions: There are several temporary solutions: domiciliation of the company at the private address of the director, domiciliation in a business center, renting professional premises, etc.
Risk of Expropriation: There have been no expropriation actions involving the real property of foreign investments in recent history.

Investment Aid

Forms of Aid: Foreign investors are mainly encouraged to develop economy and tourism. Aids are granted to companies that introduce new products and new technologies within the Greek market, that modernise sites and production tools and protect the environment by making for example energy savings. In Greece, the amount of aids (subsidies, loans...) varies with the geographical regions: 5 can be listed (A, B, C, D and Thrace). For further information on these aids, the following organisations should be contacted: ELKE and the Ministry of National Economy.
Privileged Domains: - Energy: Greece has a liberalised energy market and is evolving into an energy hub in this decade. Today, it represents a significant and dynamic sector of the economy. Alliances with major European, American and Japanese companies and oil and gas agreements have positioned Greece as the country to do business in energy.
- Technology: Greece is rapidly transforming itself into a knowledge-based economy. Its projected ICT market growth for the next two years is 6% which is significantly higher than the EU average of 3%.
- Tourism: Greece ranks in the top 15 destinations worldwide. The Greek tourism sector is a continuous growth market and represents 18% of the country's GDP. Annual arrivals are 20 million.
- Food & Beverage is the most dynamic and high growth sector in Greek manufacturing. Twenty-five percent of the most profitable Greek companies are food & beverage companies. Production growth rate is almost double that of the entire manufacturing industry.
Free Zones: Greece has three free-trade zones, located at Piraeus, Thessaloniki and Heraklion port areas. Greek and foreign-owned firms enjoy the same advantages in these areas. Goods of foreign origin may be brought into these zones without payment of customs duties or other taxes and remain free of all duties and taxes if subsequently transshipped or re-exported.

Investment Opportunities

The Key Sectors of the National Economy: Services are the largest and fastest growing sector of the Greek economy.
Trade and financial services (29% of GDP), real property management (22.6% of GDP), tourism industry 14.3% of GDP, health (8.1% of GDP), education (7.7% of GDP) and transportation and communications (14.4% of GDP) are the largest service sectors. Greece has also a long shipping tradition.
Agriculture accounts for 7.7% of GDP and employs about 15% of the workforce. Despite significant support from the EU in the form of structural funds and subsidies, Greek agriculture is still characterized by small farms and low capital investment.
The industrial sector accounts for 10% of GDP while construction covers 12.7% of the GDP. The country’s energy sector is evolving.
Privatization Programs: The electricity market in Greece was supposed to be completely deregulated as of mid-2007. Unfortunately, the process has been slow, and the goal has yet to be realized.
The government is working toward privatization of several state-owned enterprises, including selling down its 28 percent stake in the Hellenic Telecommunications
Organization (already down following the sale of over ten percent to private interests), further privatizing the Postal Savings Bank, the Agricultural Bank and the Bank of Attika and allowing private ownership of ports and port service facilities.
Tenders, Projects and Public Procurement: Mopadis, Public Procurement Monitoring Unit (PPMU)
Tenders Info, Tenders in Greece
Ted - Tenders Electronic daily, Business opportunities in EU 27
DgMarket, Tenders Worldwide

Sectors Where Investment Opportunities Are Fewer

Monopolistic Sectors: Restrictions on foreign investment also exist as regards land purchases in border regions and on certain islands, on national security grounds

Finding Assistance For Further Information

Investment Aid Agency: Investment in Greece
Other Useful Resources: Invest in Greece
Invest in Greece
Doing Business Guides: Greece Commercial Guide 2010 - Buy USA

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